The resumption of student loan repayments will amount to $5.5 billion-$8.2 billion per month, Fitch said.
Fitch also predicted student loan delinquency rates will quickly reach pre-pandemic levels or above.
AdvertisementAdvertisementStudent loan payments resume next month, draining billions of dollars a month from consumers, who will start pulling back sharply on spending, Fitch Ratings forecast in a Wednesday report.
"Debt service is expected to trend higher in the coming quarters as student loan payments resume and higher financing costs take hold for much longer."
AdvertisementAdvertisementIn early August, US credit card debt topped $1 trillion for the first time — though credit spending growth has begun slowing, it has maintained levels that are about double pre-pandemic averages.
Persons:
Fitch, —, Biden, Olu Sonola
Organizations:
Service, Fitch, Federal